The Insurance and Pensions Commission (IPEC) has voiced its concerns over a notable trend in Zimbabwe's life insurance industry, which is shifting from traditional long-term products towards predominantly renewable annual policies.
In its “Life Assurance Sector Report” for the first nine months of 2025, released in December 2025, IPEC said that the change is especially clear in funeral assurance and group life assurance policies currently available.
IPEC said in the report, “This practice raises regulatory concerns about its compliance with the Funeral Directive's objectives, particularly regarding the level of policyholder protection. As a result, the industry is strongly encouraged to strictly follow the rules set out in the Funeral Directive.”
The Funeral Directive is a regulatory measure, effective from 1 July 2023, designed to protect policyholders. It aims to end perpetual premium payments, ensuring that policies are more consumer-centric. It stipulates that funeral assurance policies must have a maximum coverage of US$6,000 and shall not be arbitrarily lapsed without formal communication by insurers to policyholders at least 30 days before the lapse date.
The quarterly report said, “Funeral assurance and group life assurance continued to be the primary sources of income for the life insurance sector, together accounting for 82% of the total revenue. The share of revenue generated from funeral assurance and group life assurance is steadily rising, affecting the market share of traditional life assurance products.”